NYT: MF Global Collapse Unlikely to Result in Criminal Charges

The bankruptcy of the MF Global financial services firm will not likely lead to any criminal charges, The New York Times reported.

The collapse of the brokerage firm wiped out $1 billion in customer money.

Criminal investigators have spent 10 months probing the bank but will likely determine that "chaos and porous risk controls at the firm, rather than fraud," resulted in the losses, sources close to the firm tell the Times.

Evidence, however, doesn't point to fraud or other wrongdoings.

Investigators are set to interview the firm's founder, former New Jersey Gov. John Corzine.

"Corzine has not yet received assurances that he is free from scrutiny, but two rounds of interviews with former employees and a review of thousands of documents have left prosecutors without a case against him, say the people involved in the case who spoke on the condition of anonymity," the Times reported.

In white-collar cases, investigators start interviews with lower-level employees and build up to the top executives of a firm, and the interview with Corzine suggests the criminal probe is coming to an end.

Corzine will likely agree to the interview.

Meanwhile, a trustee overseeing the liquidation of MF Global's parent company said MF Global customers should receive most of their funds though nothing is guaranteed.

"We very much would like to pay every customer 100 percent," said James Giddens, the trustee for the broker-dealer unit, adding "it will be a time consuming, difficult uphill battle," according to Reuters.